Contract staff bear brunt of pink slips
The decline in growth in the auto industry over the past 11 months has affected the components industry as well. It has resulted in the laying off of 8-10 lakh contract employees in recent months in the auto parts sector.
According to a senior official at the Automotive Component Manufacturers Association of India (ACMA), the job losses are happening largely because of the slowdown in the auto industry and in the major hubs including the Gurugram-Manesar belt of Haryana, Pune, Jamshedpur (Jharkhand) and some parts of Pithampur (Madhya Pradesh).
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Without giving details about the major companies that are cutting jobs, ACMA Director General Vinnie Mehta told BusinessLine: “The job cuts are happening around the hubs and by at least 10-15 per cent in each of the companies. The entire Haryana belt is suffering. There are around 50 lakh workers in the auto components industry and around 70 per cent of them are on contract.”
He said the losses are a ‘trickle-down’ impact of the slowdown in the auto industry, especially passenger and commercial vehicles makers, and if this continues, more lay-offs are expected. The two-wheeler sector is doing fine now, but one can’t be sure for how long, he added.
Source: The Hindu BusinessLine
